How do you decide what used equipment is worth?

Discussion in 'Lawn Mowing' started by jc50292, Aug 16, 2005.

  1. jc50292

    jc50292 LawnSite Member
    Posts: 34

    I'm about to purchase a competitor's business. With it, I'm getting:
    Gravely Pro160H
    2 Shindaiwa trimmers
    2 Shindaiwa blowers
    1 hedge trimmer
    1 tiller
    1 lawn vac
    15' Trailer with trimmer racks, blower racks, and toolbox.

    Now, I know the Gravely is 7,699 new but what do I offer for it? It has a little over 300 hours on it and it's under warranty until next July.
    The is new this year, one's a couple of years old. One is a 261 and the other is a 230.
    The blowers are both Shindaiwa backpack blowers.
    The trimmer is a Shindaiwa 230.
    The tiller is a Mantis.
    The lawn vac is a Little Wonder Vac.

    Okay, I have very little clue what to offer on this. I feel like what he's asking for is likely pretty fair, but being as I don't know, I'm just asking for a little guidance. I appreciate any insight anyone can give me.
  2. scagwildcat

    scagwildcat LawnSite Senior Member
    from nw. ct.
    Posts: 507

    how much is he asking?
  3. jc50292

    jc50292 LawnSite Member
    Posts: 34

    $9,300 for the equipment.
  4. chimmygew

    chimmygew LawnSite Senior Member
    Posts: 576

    Keep in mind that the warranty probably will not transfer. Are you getting any accounts with it?
  5. jc50292

    jc50292 LawnSite Member
    Posts: 34

    Yes, I'm getting about 53K worth of contracts with it. I'm paying about 5K for that.
  6. scagwildcat

    scagwildcat LawnSite Senior Member
    from nw. ct.
    Posts: 507

    well, all i can say is that as far as the accounts, nine times out of ten you will loose half of them before you even start working, not to put you down, this always happens, people are used to a service, and when a new guy shows up. they get worried for some reason, and feel the need to hire someone on their own... this has happened to many people i know, so be careful, make sure that you have signed contracts from his clients, or what i have done in the past, is, make a deal with this guy,tell him if all of his clients stick with you over one full summer, or what ever time you give him, then you will pay him full price, if you loose 5-10 lawns its this price, get it?
    this way you don't pay for nothing, as far as the equipment, its hard to say without looking at it all, i would say that i wouldn't pay more than 4500 for it all, remember that its used not new..... its not like it was a Sunday driver, these items were used for 8 hours a day! everyday,.......... hope that this helps you.. this was not intended to mislead you in anyway
  7. jc50292

    jc50292 LawnSite Member
    Posts: 34

    That's very sound advice Scag. I hadn't looked at it from that perspective.

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